This passage seem simple enough, but the meaning behind the passage goes really deep for me. I believe that this passage is indicative as to how most people plan for retirement. The thought is that as long as you keep throwing money into your 401K, all you have to do is wait 30 years and you can live comfortably. I think, at best, thats optimistic thinking and, at worst, a
dangerous and almost lazy assumption. Frank states, “It seems silly to leave something so important in someone else’s hands.” And that is exactly what we are doing by only relying on our 401K to make sure we have a comfortable retirement. Frank goes on to say that he wants more control over his goals and dreams. “I mean, what if something happens? What if Santa forgets? What if I do something that gets me on the naughty list?” I made a point to put these questions in the book because I wonder the same things about our reliance on the stock market. When you retire, what if we are in a recession? What if the value of our 401Ks takes a big hit? What if we need access to liquid cash before retirement age?
I am not trashing 401Ks or the stock market. I happen to be heavily invested in the stock market. The point I am making is that there are more ways to diversify your retirement besides putting all of your extra money in your 401K and hoping for the best. Just like Frank, I want more control over my goals and dreams. Perhaps instead of putting X amount of dollars into your retirement account you split that money and get into buying other assets: real estate, small businesses, self development courses, yourself, books and classes.
I encourage you to not just invest in the stock market, but invest in yourself. The better you make yourself, the more money you can make. Buy the book, take the course, sign up for the gym membership. These are all things that can have an equal, or even greater impact on your life, your income and your retirement. Invest in you! Don’t just leave your retirement up to a bunch of fund managers and brokers.
I spend frivolously in the area of health because the healthier I am, the better I feel, the better decisions I make and the longer I will live. The longer I live, the more money I can make. The fat person is more likely to die younger. Their decision making ability is clouted, don’t feel as good, and don’t have as much stamina and endurance. Eventually, those weaknesses will creep their way into other areas of their life; including their income.
This line of thinking is what drew the inspiration for this page. Just like Frank is recognizing it’s silly to leave the chance of getting his bike up to Santa, it’s just as silly for us to leave our retirement up to the stock market.
